Bulan Inc.makes a range of products.The company's predetermined overhead rate is $20 per direct labor-hour, which was calculated using the following budgeted data: 
Component T6 is used in one of the company's products.The unit product cost of the component according to the company's cost accounting system is determined as follows: 
An outside supplier has offered to supply component T6 for $101 each.The outside supplier is known for quality and reliability.Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by this decision.Bulan chronically has idle capacity.
Required:
Is the offer from the outside supplier financially attractive? Why?
Definitions:
Electroencephalogram
A test or record of brain activity produced by electroencephalography, showing the electrical activity of the brain.
Electromyogram
A diagnostic test that measures the electrical activity of muscles at rest and during contraction to assess their health and function.
Muscle Tension
A condition where muscles remain semi-contracted for an extended period, which may contribute to various physical discomforts.
Interpersonal Attraction
The force that draws individuals together, which can be based on factors like physical appearance, similarity, or familiarity.
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